News

Archive

Alderon Announces Further Resource Upside and Comments on Rail Capacity

Details

04 November 2010

Alderon Resource Corp. (TSX.V: ADV) (OTCQX: ALDFF) (“Alderon”) is pleased to announce plans for a winter drill program on the Kamistiatusset (“Kami”) Iron Ore Project in western Labrador that is aimed at further increasing the potential size of its iron ore resource. The program will consist of 5,000 meters (m) of drilling in North Rose and is designed to expand on the current 25,000m program expected to be completed by the end of November 2010. The 2010 and winter 2011 programs are planned with the goal of delineating 600 to 800 million tonnes at a grade between 28-32% iron ore. The potential tonnage and grade are conceptual in nature and it is uncertain if further exploration will delineate a mineral resource.

“We are having great success with the 2010 program and have found the area north of Rose Lake to have great iron thicknesses and grade,” says Matt Simpson, Chief Operating Officer of Alderon. “We want to make sure to include this new area to our current work heavily focused on proving up Rose Central and Mills as it should add significantly to the resource.”

A total of 21,907m has been drilled on the property to date and the 2010 drill program is on track to be completed by the end of November 2010 with 25,000m drilled. The 2010 program will be followed by an initial National Instrument 43-101 (“NI 43-101”) resource estimate in the first quarter of 2011. Watts, Griffis and McOuat Limited (“WGM”) has been commissioned to provide this resource estimate and has already completed the required site visits and sampling program.

The 2011 winter program is expected to commence during the last week of January and take approximately seven weeks to complete. The program is anticipated to cost approximately $2.5 million and will also be followed with an updated NI 43-101 resource estimate late in the second quarter of 2011. The winter program will focus on adding the northern portion of the Rose Lake Zone to the resource.

Rail Capacity

BMO Research attended a site visit of the Iron Ore Company of Canada (IOCC) operations in October 2010. In the BMO Capital Markets write up on Labrador Iron Ore Royalty dated October 21, 2010, BMO states, based on commentary from senior IOCC management, that “… Rio Tinto’s QNS&L [Quebec North Shore & Labrador] rail line, which runs essentially from Schefferville to Sept-Iles, could be expanded with minimal capex [capital expenditure] to 75 - 80Mtpa [million tonnes per annum] of hauling capacity.” This capacity is in line with an earlier analysis conducted for Alderon by industry experts.

“There is currently only approximately 30Mtpa being shipped along this rail line,” says Mr. Simpson. “Even if every existing mine expands to their full currently stated production target and each known new company (including Alderon) commences production, there is still only just over 60MTpa being produced, so rail capacity shouldn’t be an issue.”

About Alderon

Alderon is a leading iron ore exploration and development company in Canada. The Kami Project is located within an existing iron ore district and is surrounded by producing iron ore mines. The Alderon team is comprised of skilled professionals with significant iron ore expertise to advance Kami towards production.

Alderon’s exploration work on the Kami Property is supervised by Edward Lyons, P.Geo., the Chief Geologist for Alderon and a Qualified Person as defined by NI 43-101. Mr. Lyons has reviewed and is responsible for the technical information contained in this news release.

This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.